Key Findings from BDO USA’s 2024 Tax Strategist Survey: Concerns, Recommendations, and Trends

The latest survey from BDO USA reveals that tax leaders are facing increasing challenges in navigating the complex tax environment, with concerns ranging from potential changes to renewable energy credits to federal corporate tax rates. The 2024 Tax Strategist Survey shows a shift in the roles of tax leaders, with fewer classified as “tax strategists” and more falling into the “tax tactician” category.

This shift suggests that many tax leaders are becoming more focused on day-to-day reporting and compliance demands, potentially limiting their ability to shape overall business strategy. To transition from tactician to strategist, BDO recommends evaluating team processes and technology, improving communication with organizational leaders, and involving the entire tax team in strategic efforts.

One of the top concerns for tax leaders of all levels is the uncertainties surrounding the 2024 election and its potential impact on tax policy. While tax strategists are most concerned about changes to renewable energy subsidies, tax tacticians are focused on changes to federal corporate income tax rates.

With the 2024 elections expected to have a significant impact on tax policy, tax leaders are advised to stay informed and take a proactive approach to navigating impending challenges. BDO recommends leaning on outside tax advisors for specialized skills, technology, and intelligence to help guide tax strategy.

International tax and trade policy is another top concern for tax leaders, with compliance and financial reporting burdens increasing under the OECD’s Pillar Two framework. The uncertainty surrounding the U.S. adaptation to the OECD agreement further complicates the matter.

Other key findings from the survey include plans to increase investment in tax risk management, the adoption of artificial intelligence and machine learning by tax teams, and challenges in understanding and executing against environmental, social, and governance (ESG) mandates.

Overall, the 2024 Tax Strategist Survey highlights the evolving role of tax leaders in a rapidly changing tax landscape, emphasizing the importance of strategic planning, collaboration, and staying informed in the face of uncertainty.